In a recent Wall Street Journal opinion article, Dean Andrew Abela and Professor Nicholas Schmitz, discuss a new trend in corporate governance: major proxy advisory firms are now introducing voting policies that follow Catholic social teaching.
“The political winds are shifting, and so are the country’s two biggest proxy advisers. ISS and Glass Lewis, which control 97% of the proxy voting market for shareholder initiatives at publicly traded companies, are no longer ignoring investors’ deeply held religious beliefs. After years of treating progressive ideology as a substitute, the companies have agreed to work with our university to help Catholics honor their faith in their investments.
The U.S. Conference of Catholic Bishops has long offered advice for investing. While binding only on its own portfolio, its guidelines attest to the responsibilities Catholics have to advance the truth through their finances. In a 2021 update, the conference highlighted several principles for proclaiming the Gospel ‘in the midst of a complex and powerful economy.’ Among them: Catholics shouldn’t invest in ‘companies, securities, or investment funds that produce a significant amount of revenue from immoral activities.’ Strategies ought to ‘protect life, promote human dignity, act justly, enhance the common good, and provide care for the environment.”’